If my business has multiple owners, can I see how profits are split?

Asked 2 years ago

I am in the process of deciding how I am going to register my small business. I am leaning more towards the LLC structure for its flexibility, but I still need to clarify a few things before making a final decision. In the case of an LLC, since it does not have a limit on how many members the company may have, will I be able to see how the profits will be divided amongst all owners?

Cohen Kirk

Thursday, September 08, 2022

LLC profits are distributed proportionately to the members' investments in the company unless you have elected for a different allocation in your operating agreement. For example, if four members invested 25%, each of the four members would be responsible for taxes on 25% of the profits.

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